Curve Finance to launch its own stablecoin

The decentralized exchange Curve Finance is preparing to launch its own stablecoin. This was stated by its founder Michael Egorov in a conversation with Spartan Group co-founder Kelvin Koh at the Redefine Tomorrow 2022 conference.

Egorov said that a ‘stablecoin’ will be overcollateralized. He declined to disclose further details.

Curve Finance specializes in trading between stablecoins and other assets of equal value with minimal slippage and fees.

The described overcollateralization model is used by the algorithmic stablecoin DAI in the MakerDAO project. After Terra’s UST crash, there arose a persistent distrust of such assets.

The algorithmic stablecoins USN from Near and USDD from Tron have overcollateralization and are included among centralized “stablecoins” USDT and USDC.

The prospect of launching a stablecoin sparked a strong reaction among CRV holders. In the last 24 hours, the asset rose by 16.3%, according to CoinGecko.

According to DeFi Llama, Curve’s TVL stands at $6.18 billion. By this metric the project ranks first among DEX and fourth among DeFi protocols overall when accounting for value locked across all ecosystems.

Earlier, on July 8, Aave developers proposed launching a DeFi ecosystem-native multi-collateral stablecoin GHO.

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